"We are in a much better position now than any deal we could have made". "Remember, they broke the deal with us & tried to renegotiate".

In response to widespread worries about global economic uncertainties incurred by a new round of tariff hikes, Geng said escalating trade tensions "serve no one's interests", and will "tie down the world economy as well".

"We can make a deal with China tomorrow, before their companies start leaving so as not to lose U.S. business, but the last time we were close they wanted to renegotiated the deal". And U.S. President Donald Trump said he was optimistic about resolving the trade dispute.

Earlier, Trump tweeted that the United States would make a deal with China when the "time is right" and said that would happen "much faster" than thought.

He thinks that whatever concessions China makes on trade will be calculated to let Mr. Trump declare victory - a win he may urgently need in what is expected to be a hotly contested political race - while not giving much ground on issues of intellectual property, protecting technology rights and market access.

Relations between Washington and Beijing have been tense since US President Donald Trump decided last June to impose 25 percent tariffs on $50 billion worth of Chinese goods in a bid to fix the US-Chinese trade deficit.

The Trump administration had pledged up to $12 billion in aid to help offset losses resulting from Chinese tariffs.

Big mistake. The U.S. economy is strong, unemployment is at the lowest level in five decades, and wages are rising.

After trade negotiations hit a wall last week and led to the imposition of new tariffs, Chinese state media has stepped up nationalist rhetoric, vowing that China won't be bullied.

Trump, who plans to meet Xi at a G20 summit in Japan next month, also urged China to buy more USA farm products.

Trump could launch 25% tariffs on another $300 billion worth of Chinese goods when he meets Xi next month.

USTR is conducting a full review of the proposed action through a comment and hearing process. Cellphones and laptops would be included in that list but pharmaceuticals would be excluded, the office said.

If China is feeling the effects of the trade war, however, so is the U.S. The latest round of U.S. tariffs and Chinese countermeasures have rattled financial markets, while everyone from farmers and small business owners to Fortune 100 CEOs have urged Mr. Trump to settle the conflict.

But China does not have as much leverage over the United States as it might seem because large parts of that surplus are in tourism and education, areas that would be more hard for the Chinese government to significantly roll back, James Green, a senior adviser at McLarty Associates, told Reuters. "But they are themselves risky and a painful tool that hits both the country against which the tariffs are being imposed and the country that is doing the imposition", Toomey said.

Japan's Nikkei stock index fell to its lowest since mid-February, while broader Asian markets were dragged down by a selloff in Chinese shares.

However, the onshore yuan weakened 0.1% to its lowest level since December 27, 2018, trading at 6.8874 per dollar, after China's Foreign Ministry said it hoped the United States does not "underestimate China's determination and will to safeguard its interests".

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